Ong Teng Cheong
Singapore
“Mr Speaker, Sir, as of now, the position is this. We have signed an in-principle agreement with the Suzhou Municipality to help plan, develop and manage a township. There are two parts to this development. So far, we have put up a rough outline plan for the development of the township.”
“The consortium would include members or companies from both the Government as well as the private sector. Whether SLF will hold a significant share it has yet to be decided. I believe SLF will hold a very small share or no share at all, because, as I have said, our role is that of a facilitator.”
“Like all other projects undertaken by SLF, such as the Pasir Ris Resort, the Sentosa Beach Resort and the Orchid Country Club, the ultimate objective of SLF's investments is to help raise the social and economic status of our workers, and ensure that our workers will continue to enjoy a fair share of Singapore's progress.”
“Sir, I think Mr Chiam has got all this confused. PAP and NTUC run BEST classes jointly. NTUC does not run BEST classes by itself. George Sita, he is referring to, is a member of the SDP who stood against the PAP in the last election. He was employed jointly by NTUC and PAP.”
“NTUC Comfort is a co-operative. The taxi-drivers are members of the co-operative, and there were more than two members who had been removed from membership of the co-operative because of misbehaviour or misconduct, or arrears of their instalment payments, or whatever it is. There were many reasons why they were removed.”
“But when members of the co-operative are actively involved with opposition political parties against the PAP or NTUC, then they are acting against the resolution of the National Trade Union Congress, and it was a compliance of that resolution that action had to be taken against them.”
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“But to achieve this, we need cooperation of the unions and the employers. Only when we have the full cooperation of the unions and employers that we are able to promote better labour-management relations and move towards company bipartisanism and towards higher productivity. The Member for Leng Kee has questioned the rationale for the liberal work permit policy and our drive towards greater productivity. I wish to explain to him that the import of workers from non-traditional sources was actually liberalized only last year to untighten the labour market and to generate some competition among job seekers so as to spur them to improve their work attitudes. Moreover, the untightening of the labour market was necessary to avert the wage explosion which a tight labour market could induce and which could damage our economy. Our labour market is now in a more balanced state. It is, therefore, timely for the work permit policy to be revised so as to prod our employers to mechanize, automate and upgrade their operations with a view to increasing productivity and reducing labour demand. A number of Members have also touched on the problems of day work permits. I only wish to inform Members that work permits are issued for the purpose of employment. As such, any application for a work permit will be considered purely on the merits of the applicant in relation to his employment, for instance, his skill, qualifications and other relevant qualities. Based on these merits, the Work Permit Office will issue to the applicant either the day work permit, individual work permit, or block work permit if he is in the construction industry.”
“Nevertheless, we are encouraging more retired workers to be re-employed. I agree with Members that the retirement age of our workers should be raised to 60 or even to 65 years. We feel that the question of raising the retirement age should be best left to the unions to discuss with management. I believe that in practice many have already done so. As for the declining growth rate in labour supply, this is the result of our successful planning policy which has led to a reduction in our birth rates. We can counter the lower labour supply by upgrading the skills of our workforce and make them more productive. We can also be more labour-efficient through mechanization and computerization. The Member for Moulmein and a number of Members are also concerned about the future of our labour relations scene. My Ministry is very seriously committed to the drive towards better labour-management relations and productivity. The National Productivity Board will be the vehicle through which this will be achieved. In future, the National Productivity Board will be concentrating its efforts on the human aspect of productivity as well as promoting better labour- management relations through Work Excellence Committees and small group participation in decision-making and problem solving through Quality Control Circles. There is no doubt that we can learn from the Japanese in areas such as team work, company loyalty and identification and good work attitudes. These are attributes that we are trying to inculcate in our workers. But it must be emphasized that we are learning not only from the Japanese but also from any other nations which, we feel, have attributes or systems worth learning in our drive towards better labour-management relations and productivity.”
“Besides this, training of workers can take place on-the-job with employers providing the facilities and obtaining financial assistance from the Skills Development Fund. There is no need to provide companies with incentives to recruit workers when they require, as proposed by the Member for Boon Lay. However, these companies should plan proper retraining programmes for the retrenched workers that they recruit. It is for their own benefit anyway. The Skills Development Fund is there to assist them by providing training grants. Similarly, such grants are also available if they send their workers to the industrial skill development courses organized by VITB and the Joint-Government industrial training courses. The Member for Boon Teck commented on the setting up of the Institute for Continuing Occupational Development (ICOD) under the National Productivity Board. The Institute for Continuing Occupational Development will use the video-tape training material as a vehicle of instruction. It will essentially be a self-training or self-learning educational package where the trainee could learn at his own pace and at his own convenience. The scheme which is being worked out by ICOD presently is still in its preliminary stages and I am not able to go into details on the subject at this moment. 7.00 p.m. I appreciate the concern of Members over the aging labour force which has been raised by a number of Members here today. However, the problem is not an immediate one as statistics show that our population is still young, and based on the 1980 census of population, 61.8% of our population are still below 30 years of age. Moreover, the CPF statistics also indicate that there is no significant decline in the number of workers aged 55 years and above in our workforce.”
“Furthermore, all employers recruiting foreign workers have to offer proper contracts to the foreign workers before their arrival in Singapore. They are also responsible for the foreign workers' accommodation and eventual repatriation. The Member for Boon Teck has also asked my Ministry to consider working out an orientation programme for all foreign workers upon their arrival in Singapore. In view of the large number of foreign workers it would not be practical for my Ministry to do so. However, the employers of foreign workers are expected to organize proper orientation programmes for their workers on their arrival, in the same way that the employees undergo orientation whenever they are appointed to a new job. The Member for Boon Teck and also a number of other Members are concerned about the unemployment and retrenchment situation following Government's policy to restructure the economy. My Ministry's monitoring shows that, so far, the unemployment situation is not a problem. For the period January to December 1981, 111 companies reported a retrenchment of about 7,000 workers. Of this number, slightly over one-third were retrenched by Rollei. Our labour market is still tight and the retrenched workers have had no difficulty in finding alternative employment. Nevertheless, Members may wish to know that Government has already taken steps to expand its training facilities through increasing the capacity of training centres set up by the Economic Development Board, VITB, Polytechnic and our tertiary institutions. Our workers can make use of the facilities provided by these institutions to upgrade themselves.”
“On the other hand, a work permit holder who has obtained the permission of the Commissioner for Employment before contracting marriage with a Singaporean will be able to enjoy continued stay in Singapore on a work permit. The Member for Kaki Bukit has rightly observed that there have been instances where foreigners were brought into Singapore without job offers and were left stranded here without employment. From the few instances that have been brought to my Ministry's notice, we invariably found that these foreigners were brought in here by unscrupulous agents in those countries without securing jobs for them first. In instances where any local agent or company is involved, my Ministry will not hesitate to deal with them. The agent could be charged under the Employment Agencies Act and the company could also be barred from employing foreign workers. As for the stranded workers, my Ministry will work with the Immigration Department to arrange for their repatriation back to their countries. Although it is beyond my Ministry's control to prevent unscrupulous foreign agents from cheating and playing out their own nationals, we have taken steps at the outset to ensure that foreign workers are brought in only by bona fide employers. Further, only those who have been offered employment here will be allowed to enter Singapore under the sponsorship of their employers. Therefore, under the present procedure for recruiting foreign workers, employers must recruit their foreign workers from the source country and not during the workers' visit in Singapore on social visit pass. This is to ensure that foreign agents do not find it feasible to bring in foreigners without first securing jobs for them from bona fide employers.”
“Such strong indication of support of our family planning policy is, of course, one of the factors taken into consideration by the Commissioner for Employment, But this does not mean that all those who volunteer for sterilization will get their application approved. Perhaps it is useful, Sir, now to inform Members of the House that since June 1973 up to December 1981, of all the applications received and processed, 83% of these applications have been approved and, of those that have been approved, about 10% were approved with offer of sterilization by the couples. As can be seen, only a minority who offered sterilization as support for our family planning policy were given approval. The majority were given approval without offer of sterilization. So it cannot be said that our marriage policy has been a draconian one. The voluntary sterilization of couples affected by our marriage policy has been debated on several occasions in this House, and I hope that the explanation earlier would give Members a clearer picture that it is only one of the grounds offered by some couples in their appeals against the revocation of work permits by the Commissioner for Employment. Some Members have also felt that it is unfair for the marriage policy to affect only work permit holders while those who marry Singaporeans on social visit pass are not affected at all. On this point, I would like to clarify that although a social visitor may marry a Singaporean without being affected by the marriage policy, his marriage to a Singaporean does not automatically confer upon him the rights of entry or residence in Singapore under our Immigration laws.”
“But unless a work permit holder is adjusted to the different and faster pace of life in our highly disciplined and urbanized society and to the ethos of small-planned families, marriage between work permit holders and Singaporeans could lead to difficulties for themselves and for Singapore. 6.45 p.m. We warned all work permit holders that unless they were able to settle down successfully in Singapore and to support a small family, their marriages with Singaporeans would be discouraged. In pursuit of this policy, some harsh measures have to be taken in the form of disincentives against work permit holders and Singaporeans who choose to marry in spite of our warning. However, if they obtain permission from the Commissioner for Employment before contracting marriage, this disincentive would not be applied to them and the work permit holders would be allowed to continue their employment in Singapore. Arising from our policy, numerous requests from work permit holders for prior permission to marry Singaporeans have been made over the years to the Commissioner for Employment. The Commissioner for Employment was not able to do so in some cases. Unfortunately, some of these couples have chosen to go ahead with their marriage and to face the consequences of various disincentives. Some of the couples would appeal to the Commissioner for Employment not to revoke their non-citizen work permits, and in some instances the couples have volunteered together to practise family planning through sterilization to support their approval.”
“We therefore have to be selective to ensure that those who are allowed to settle here permanently through marriage to citizens and permanent residents are the ones who will best fit in with our social mores and our work ethics. It was with this in mind that we announced, in July 1973, the policy governing the marriage of work permit holders to citizens and permanent residents. While we cannot demand that the work permit holders must have our approval to marry citizens and permanent residents, compliance with this policy will ensure that the non-citizen party will be allowed to reside and work here. It should be borne in mind that foreigners do not have the right to work or reside here. Those are privileges the Government grant to serve objectives of national policy. When we implemented our policy to allow in foreign workers, we have already anticipated the likely impact foreign workers would have on our social structure and our population. We have taken on the responsibility of ensuring that the influx of foreign workers would not become a permanent burden to Singapore and eventually erode our economic and social achievements as well as the standard of living of our people. To shirk this responsibility would be an injustice to all our citizens. As early as June 1973, my Ministry announced its policy to discourage marriages of foreign workers to Singaporeans. In a press statement we made known our concern that it was only natural for young workers on work permits, having found their bearing, to make friends and mix freely in our society. Many of them after a while might want to marry, settle down and raise families in Singapore.”
“Sir, thank you for saving me from all this. I am not quite sure where to start. Perhaps I will start with the work permits since quite a number of Members have touched on the subject. Several Members have in their questions touched on various aspects of my Ministry's policy on the import of foreign workers, another concerning marriages of foreign workers to Singaporeans, and related issues. Although most of the questions have already been debated at length during the various previous sittings of this Parliament, I feel that I need to dwell on them again and reply to the Members concerned in order to clear some of the doubts. Let me first touch on my Ministry's policy on import of foreign workers. For more than a decade our Government has allowed the import of foreign workers to supplement our indigenous workforce. It is through this policy that we have been able to avail ourselves of every opportunity to accelerate our economic growth despite the constraints of our own manpower resources. However, the import of foreign labour has its setback. The social problems associated with import of foreign workers experienced by developed countries are well known. We should therefore tread carefully to avoid them. Singapore is an island-state of limited land area and natural resources. For this reason we have implemented a family planning policy to curb the growth of the population. Therefore, in importing foreign workers we recognize at the very outset that we cannot afford to allow all foreign workers to settle here permanently. But it is inevitable, Sir, that in working here some of the foreign workers will fall into a relationship with our citizens and permanent residents resulting in their desire to marry.”
“Yes, it has already been discussed if the Member had paid attention. There is a provision for this financial year for the development of a Vehicle Emission Test Laboratory to check on the emission control of cars coming into our market. This is being studied by the ROV and the Anti-Pollution Unit. I would like to come back to this point that the low lead content or lead-free petrol requires higher quality engines and more costly engines. So it will make the ownership of cars more expensive. We have to strike a balance somewhere between having clean air and the cost of car ownership. But I agree with the Member that the health of our people is paramount in our consideration. Sir, I think I have covered all the points.”
“Yes. The lead content matter actually comes under the Ministry of the Environment. The ROV at the inspection centres check on the carbon monoxide content. As I have mentioned, this is one of the items of inspection. If the Member wants to raise a question about lead content, I suggest that he raise it with the Ministry of the Environment. An hon. Member: It has already been discussed.”
“There are other points raised by Members, Sir. The Member for Anson also mentioned about the danger of fumes. The checking of the emission of cars is one of the items of inspection being carried out by the inspection centres. The Government is very much aware of the danger of fumes to the health of our people. An hon. Member: Lead content.”
“This must be an object lesson for the people of Singapore, the lesson of the GLC, how a nation has gone down relentlessly because crucial aspects of their life have been subsidized, for example, health, transport and unemployment, etc. Individual performance and excellence has been punished by higher taxation to pay for these subsidies. The able and hardworking ceased to work hard and some have migrated. And the majority have become used to idling, moonlighting and collecting unemployment benefits. Sir, unless Singaporeans make the habit of earning to pay for what they need in life, Singapore must go down. We shall go down faster than the British because our base, our natural resources and manpower, is so much weaker.”
“One other conclusion of the study worth noting is that subsidies lead to people making more trips than what are strictly necessary from the standpoint of overall economic efficiency. In other words, subsidy distorts otherwise rational patterns of travel and behaviour. For instance, people no longer have any incentive to live nearer their places of work or to send their children to nearer schools. We must recognize the fact that lower bus fares are not a gift of god. The British people are slowly beginning to realize this sad truth. The British people are fed up with paying high taxes. For example, the average bus driver in London pays 20% of his income in income taxes. The average SBS bus driver, on the other hand, pays less than 2% of his income in income taxes. In fact, it is because of high taxation that the move to cut fares in London was not well received and led to the GLC (the Greater London Council) being taken to court. Sir, subsidy for the public transport service is a zero-sum game. Increased subsidy must lead to increased taxation. Otherwise where does the money come from?”
“You can check it up in the report. We could come to some more authoritative sources in as far as bus operations are concerned than the British Labour Party Councillors. The fact that subsidies led to inefficiencies is clearly brought out in an independent study done by the Transport and Road Research Laboratory in the United Kingdom. For the benefit of Members, I wish to say that the Transport and Road Research Laboratory is an internationally recognized and often quoted authority on transport matters. Amongst other things, the Transport and Road Research Laboratory study concluded: 'And as the level of subsidy increases, productivity in public transport declined. Workers and management tend to become slack and there is gross over-manning.' Something which I have just pointed out in the case of London Transport compared to our SBS situation. To be more specific, the Transport and Road Research Laboratory found that as the level of subsidy increases, the unit operating cost also increases. Mathematically, the Transport and Road Research Laboratory established hat for every 10% increase in subsidy, there is approximately a 5% increase in both cost per vehicle per kilometre and cost per journey. This is attributed to the easy availability of subsidy. The study also found that a 10% increase in subsidy leads to a roughly 2% increase in manning levels. Increases in subsidy have led to increases in wage levels also. I would like to quote from this study, page 26: 'That the available evidence suggests therefore that it is the availability of subsidy which gives rise to higher levels of pay rather than vice versa.' This report was published just about a year ago, not 1972.”
“The Greater London Council then appealed to the House of Lords against the decision of the appeal court. The House of Lords upheld the decision of the appeal court. Now that there is no possibility of getting additional subsidy, the London Transport average bus fares have to be increased, I believe, by 100% last week. And the average London Transport bus fare now comes to about S$1.30. This is about 2 1/2 times the average SBS bus fare. Mr Jeyaretnam: Salaries? The wages in London - how many times are they of Singapore's wages?”
“On a staff to bus ratio, London Transport staffing levels are about 25% higher. Coming to London Transport bus fares. Despite the subsidy the London Transport bus fares are not cheap. Members may be aware that London Transport recently got embroiled in a contentious situation. A Labour Party Councillor - I am not sure whether he is the same one quoted by the Member for Anson - but a number of them during the elections for the Greater London Council six months ago, campaigned to further subsidize bus fares in London by increasing the subsidy to London Transport buses from 25% to 50% of the operating cost. This is a zero-sum game. In order to pay for this, the Greater London Council decided that property tax must be doubled so that it would be able to pay a higher subsidy to the bus operations. This was, of course, not well received by the citizens in the Greater London area and this resulted in Bromley Council, which is a constituent county of the Greater London Council, taking the Greater London Council to court to declare that the Greater London Council's scheme of subsidy is illegal. It went all the way up to the appeal court. The court of appeal presided by Lord Denning declared the Greater London Council scheme of subsidy illegal.”
“Sir, over the past four years, the amount of subsidy that the British Government had to pay out to keep London Transport buses afloat has more than doubled. In 1977 the operating deficit of London Transport buses was S$270 million or o70 million. Last year in 1981, the operating deficit of London Transport, Bus Division, rose to S$650 million. This is more than twice the SBS annual revenue. Furthermore, it does not include the additional subsidy of about S$90 million necessary for the purchase of new buses for fleet expansion. There is no doubt that subsidies have had some deleterious effect on London Transport, and we can do well to avoid. Sir, with subsidies there is little incentive to operate as efficiently as possible. Accountability is reduced and so is the need to trim costs and enhance efficiency. In the case of London Transport the problem is aggravated by restrictive union practices. For example, even with three million people out of work the union insists on a 10 to 15% shortfall on staff requirements so that overtime can be maintained for the bus crew. It will be useful to compare some performance parameters of London Transport with those of SBS. London SBS Transport Holding fleet 2,994 6,375 Operating fleet 2,560 5,580 Total revenue bus-miles 151 171 per annum million million Total revenue bus-miles per annum per bus 59,000 30,650 Total staff strength 11,550 31,100 Revenue (bus-miles per staff) 13,100 5,500 4.45 p.m. These figures show that productivity of London Transport buses, in terms of bus-miles per bus, is only half that of SBS buses. Productivity of London Transport staff in terms of bus-miles per staff is only 40% compared with that of SBS. Even though London Transport has twice as many buses as SBS, it has three times as many staff.”
“I am aware of the guillotine time. But I think this is of wider interest than just the Member for Anson.”
“Perhaps it may be useful for me to come back to London Transport buses since the Member has quoted the British Labour Party Councillors talking about cars being the cheapest form of transport to move from one place to another. I do not know but I have better authority on the subject than the Labour Party members. Coming to the public transport system, London Transport is perhaps a good example for us to examine how one of the world's finest public transport system has undergone a steady decline and deterioration arising partly from the increasing levels of Government subsidy. I will take a few minutes to explain this. The Chairman: Perhaps you can supply him with the figures, Mr Ong. Guillotine time is past.”
“I am aware of that, Sir. For some new towns, including Jurong, the feeder services are found to be the most efficient means of providing a bus service. Without the feeder services, more trunk services would have to make long detours and meander all over the township. This means that the SBS would have to put in more buses and thus incur greater operating costs in diesel fuel and wages. It would also mean longer travelling time and higher cost to many commuters of the trunk services. What is probably more important to the commuters is that, in the end, he will have fewer buses to serve him on the route he is travelling. He may also end up having to make trunk to trunk transfer and pay a higher fare. As regards the specific case of the one-way Feeder Service No. 228, I propose not to go into details. I suggest that the Member for Kaki Bukit submit a Question for Oral Answer or Written Answer. I would be happy to supply him with the information he requested. Mr Speaker, Sir, perhaps I could come to the question of public transport raised by the Member for Anson. He would like the Government to provide a fast, efficient and cheap public transport system. Fast and efficient, yes, but cheap, I do not know. He mentioned about subsidy and quoted what I said earlier about London Transport and other cities where the public transport services are being subsidized. At the present moment SBS is not subsidized. It is making a marginal profit to pay dividends to shareholders who hold concession passes. If he is proposing a subsidy, I do not know what amount of subsidy he has in mind. London Transport buses as he mentioned are heavily subsidized.”
“Only 5% has to make a transfer, including those making a transfer from the feeder service. 4.37 p.m.”
“Our job is to try to increase the number of people who will benefit and reduce the number who will not. In the case of the second bus company, we recognize that there are some SBS shareholders living in Woodlands and Sembawang areas whose benefit will be reduced compared with the present situation. In addition, some people will no longer have a direct service. What we must also recognize, however, is that setting up a second bus company is for the larger good of Singaporeans as a whole. This is because competition between two companies will foster efficiency and so help to keep the costs down. Nonetheless, my Ministry does not intend to stop at that. One possibility that we will be examining closely is that of a transfer ticket. As for SBS shareholders, my Ministry will explore the matter with the two companies to try and find some equitable and acceptable way for the second bus company to honour SBS shareholder concession passes. In fact, this may be preferable to the second bus company issuing its own shareholder concession passes. But there are obvious diffi- culties in both these options and I cannot at this stage promise that we will have a solution that will please everyone. The Member for Kaki Bukit has touched on the feeder service. I would like to assure the Member that the SBS is very mindful of the inconvenience and hardship that the feeder services may have caused some commuters. However, feeder services are an essential element of a cost-effective bus service. Almost all SBS feeder services are running at a loss. SBS would not like to introduce feeder services to a new town if it could help it. Today, some 95% of commuters taking buses to the Central Business District have a direct service.”
“These were merged in two phases, a process which culminated in the formation of SBS in 1973. Shortly afterwards, the Government sent in a strong and competent team of officials (GTO) to revamp and consolidate the company operationally and administratively. It took the GTO some five years to strengthen the company and put it on a viable footing. Only then was it decided to get public listing for the company. Twenty million shares were issued to the public. With the confidence inspired by the presence and achievement of the GTO, the Government gave an assurance that the company would be in a position to give its shareholders an annual dividend of 7 1/2%. With this assurance, the CPF Board consented to the use of CPF funds for the purchase of SBS shares, as it meant that the return on CPF funds would be protected. Another factor that the CPF Board took into consideration was that, being publicly listed, the SBS shares could be easily bought and sold at the Stock Exchange. This meant that a buyer who had used his CPF savings to purchase the shares would not be left stranded in a position where he could not readily find a buyer should he decide to sell his shares. In the case of the second bus company, there is no GTO and neither is it the Government's intention to send in a team of Government officials. The Government, therefore, cannot give an assurance that the second bus company would pay a dividend of 7 1/2% to the shareholders. Members will agree that allowing the use of CPF money in these circumstances would not be prudent. Whilst on this subject, let me restate our philosophy. In any scheme of this nature and magnitude, there are always trade-offs. In other words, there are bound to be some who will benefit and some who will not.”
“As I have said earlier, we are now studying the results of the car inspection scheme and a final decision, one way or the other, will be taken in a few months' time when we will have a better picture of the road worthiness and condition of our car population. The Member for Chong Boon asked about the shareholders of SBS now presently eligible for concession pass and whether we would do anything to help solve their predicament. The SBS shareholders are presently eligible for shareholder concession pass. I take it that the thrust of the question raised by the Member for Chong Boon is whether the second bus company will also make available this kind of facility and, if so, whether CPF funds can be used to buy such shares. Unlike SBS, the second bus company is a private company. Nevertheless, should it decide to take on the status of a public company, the Government will not prevent it from doing so. The company can then invite public subscription for its shares and, in return, give concessionary travel to its shareholders. 4.30 p.m. It should be clearly understood, however, that the company will not be in a position to seek a listing on the Stock Exchange. This privilege, as Members may be aware, is reserved for companies with a successful track record stretching over a period of several years. In other words, even if the second bus company were to become a public company and sells its shares to the public, its shares could not be bought and sold on the Stock Exchange. The use of CPF money in these circumstances would only complicate matters further. I think it would be useful to re-capitulate the different circumstances surrounding the decision to allow CPF money in the case of SBS. Members will recall that prior to 1971, there were 10 Chinese bus companies in Singapore.”
“Let me go through the points in the order they were raised. The Member for Leng Kee raised a point about PARF. This matter has been raised before, as he has correctly pointed out, since 1978. In fact, it was raised as recently as December last year by the same Member in this House. I would not go into details again, but I think the main arguments bear repetition. Now that compulsory car inspection has been introduced, I can make out a very good case for the total abolition of PARF. This is because a car which is more than 10 years old must be inspected annually and, since there is no life-span prescribed for private cars unlike taxis, any car could be on the road indefinitely so long as it passes the annual inspection. There is, therefore, no need to give any incentive to an owner to replace his car earlier with PARF. I am sure my colleague, the Minister for Finance, will be very happy to accept this argument and do away with PARF altogether. The issue has arisen because of the wide differential between ARF and PARF. Since we now have vehicle inspections, I think there is no need for such a big difference. The differential can be cut while retaining the 10-year eligibility, that is to say, we can increase the PARF gradually over a number of years. Another way to reduce the differential is to phase the PARF upwards and to stretch the eligibility period up to 15 years, similar to the proposition made by the Member for Leng Kee. So after the 15th year there will be no difference between ARF and PARF, in the sense that we already do this for the taxis. A taxi which is replaced after its sixth year pays the full ARF of $5,000. If it is replaced between five and six years, it pays $2,000 and it pays zero ARF if it is replaced before it is five years old.”
“Normally, the arrival times of long-haul flights are confirmed two or three hours before the aircraft lands. However, for short sector flights, for example, from Kuala Lumpur, Penang and Jakarta, the arrival time can only be confirmed between 15 and 30 minutes before touch down. This is because the flight time is short, like in the case of Kuala Lumpur/Singapore sector where the aircraft is airborne for about 30 to 35 minutes. Information on arrival times have to be obtained from the air traffic control centres of neighbouring countries when the aircraft have to pass through before coming into Singapore control. Sometimes information is not received promptly and this can result in some delay in the confirmation of the flights. The DCA will endeavour to confirm flights as early as possible notwithstanding the constraints mentioned above.”
“Sir, I will deal first with the comment raised by the Member for Alexandra on the difficulty of getting through on the telephone. Most airport authorities do not provide flight information service over the telephone. This service is normally provided by the airlines or their handling agents. Nevertheless, our DCA is still providing this service. Since 1979, the DCA has encouraged the public to also ring the airlines and handling agents for flight information. This will make it easier for them to obtain such information. The DCA by itself would not be able to go on increasing manpower to provide this service alone as the demand for such information has increased over the years. The public can now call several alternative telephone numbers to get the flight information. The Member for Alexandra should first try the airline's flight information telephone number. If the line is busy, he can try the telephone number of the airline's handling agents. If he is still unsuccessful, he can ring the DCA automatic recorded arrival flight information service which gives recorded information on flights arriving within the following hour. Finally, he can also call the DCA flight information number. All these telephone numbers are conveniently listed under the Civil Aviation Department heading in the telephone directory. The flight information telephone numbers of the major airlines are also listed daily in the Business Times. Although the situation has improved since the service was decentralized, the DCA is aware that at times it is difficult to get through the popular telephone numbers. The responsible parties have already been asked to increase the number of lines. The Member's second point concerns the late confirmation of arrival flights.”
“He can join in or he can wait until later on.”
“Mr Speaker, Sir, since this issue has been debated over and over again in the past, I do not intend to repeat the arguments. The Member for Khe Bong is right when he said that the matter has been raised in the past and that we have been studying the MRT since 10 years ago. Even if we had come to a decision 10 years ago, it does not mean that we need an MRT at that time. The timing for the construction of an MRT system depends on transport demands and other considerations, as I have mentioned earlier. Ten years ago, even if we felt that in the long-term we need an MRT, we would not have built the MRT in the 1970s as the Member for Clementi has pointed out that the traffic condition today is still bearable. There is no justification for an MRT today. But we are talking about the traffic situation in 1990 and the year 2000. The same argument has been put forth previously about the cost of constructing the MRT and thai it would have cost us much less, perhaps less than $2 billion in early or mid-1970s. Today, it will cost us much more. Of course, the other argument is that we are now better able to afford the construction of the MRT than we were 10 years ago. But that is besides the point. What we want is to make sure that, in view of the large amounts of investment that we are going to sink into this project, we are making the right decision and that this investment that goes in will not result in a bottomless pit where we would keep on throwing money into the system without any sight of return or viability. The Member for Khe Bong mentioned about subsidy for public transport raised by Opposition members at election rallies in the past. I do not know whether the Member for Anson would like to join in. We are talking about public transport.”
“I think it will be better to consider subsidizing our public transportation because in all countries in the world, every government subsidizes public transportation. Why can our Government not also consider subsidizing public transportation to a limited extent? If I were in the Opposition party, I would also propose this suggestion to the Government. There is ulterior motive in condemning the Government for the increase in bus fares, inflation and so on, without being able to propose alternative suggestions, as some useless Opposition do. Therefore, I say that this kind of Opposition politicians can propose nothing more than non-constructive proposals. If we can give a limited subsidy to public transportation, it would also mean that we are helping the workers so that they can be more punctual when they go to work. In this way, it will also increase their productivity. Therefore, I hope the Minister will consider this proposal and not waste any more time on the planning of the MRT. 3.45 p.m.”
“London bus operations can only generate 60% of the operating cost and it has to be heavily subsidized. Transport considerations have a crucial bearing on the decision to have MRT. But MRT cannot be viewed purely as a transportation investment. There are equally important economic and social factors. For example, the opportunity for intensive development with MRT, the multiplier effect, the boost to long-term economic confidence and the improvement to the quality of life are some of the factors. We also have to consider the impact that MRT construction would have on the economy and, as the Member for Clementi has rightly pointed out, to ensure that its construction does not overheat the economy. In the meantime, the Government will make a firm decision on the MRT only after it has carefully considered all these factors. In the meantime we will continue to improve the bus system. Mr Ho See Beng( In Mandarin): Mr Speaker, Sir, as regards the building of an underground railway, I believe this proposal was mentioned ten years ago. I was the very first to request the Government to give sufficient consideration to this proposal. If at that time the Government had decided on the spot, perhaps it might have been built at a cost of $200 million to $300 million. But now it is not possible to build at this cost. I think there is a saying that "Time and tide waits for no man, and the years roll by without human compassion." Now that the opportunity has passed, it is difficult to recoup the time. If the Government wants to build an underground rail- way, willy-nilly, then perhaps it may have certain unfavourable repercussions and we may lose more than gain as a result.”
“The Comprehensive Traffic Study, Phase A, has shown that the total volume of traffic in the Central Business District in 1990 will be 37% higher than what it is today. Some critical roads will be carrying a much higher volume of traffic. For example, Orchard Road, near Dhoby Ghaut, will be carrying some three times more traffic than what it is carrying today. Stamford Road traffic will double by 1990. Will MRT really alleviate the problem of traffic congestion? This question was raised by the Member for Clementi. Let us take a look at London and Hong Kong. The Hong Kong mass transit railway today carries about 700,000 commuters per day. London Transport, underground, carries more than 1 1/2 million passengers per day. This is more than 40% of all daily trips to Central London. If the traffic conditions are bad enough with the London underground, we can imagine how much worse they would be and how poor the public transport system would be if all these people had to be crammed into buses. A further lesson to be learnt is that even with MRT, car restraint policies will continue to be necessary if we do not want traffic conditions to deteriorate, as the Member for Clementi has already pointed out. However, we must not view MRT purely from the point of view of the motorists. The majority of our commuters use public transport and the improvement that the MRT will bring about to their life should also be considered. The case for the MRT is not weakened by the fact that most MRTs around the world lose money. In fact, most bus companies also lose money, more so than the MRT authorities. London Transport is one example where the underground transport can recover 95% of its operating cost from fares.”
“Not only have these studies been necessary but the cost is also miniscule compared with the estimated project cost of some $4 billion. The Members for Clementi and Telok Blangah have asked about the progress of the Comprehensive Traffic Study. Phase A of this study was commissioned early last year. Its purpose was to find out if and how well an all-bus system can continue to serve our public transport needs in the years 1990 and 2000. All analytical work pertaining to the study has been completed and the final report is being prepared. Broadly speaking, the study has shown that if the all-bus system is to be stretched to 1990, the bus service route structure would have to be totally revamped to reduce the number of direct services to the Central area. Today some 95% of commuters have a direct service to the Central Business District. With the all-bus system, these services would be reduced to about 50% by 1990. At the same time, some drastic traffic management measures, such as double bus lanes, will be necessary to give buses priority in the Central Business District. All this will be at considerable cost to the commuting public and the society at large. To my mind, therefore, it is no longer a question of whether we will have the MRT but rather when we will have the MRT. Full details of the implication of an all-bus system and other priorities will be made known shortly when the final report is ready. The Member for Clementi said that Singapore's traffic conditions are bearable and, therefore, the MRT cannot be justified. He is right. It is bearable now. But I am not sure if Members of this House - I do not mean Members of this House today, but Members of this House, say, eight to 10 years from now - will agree with him.”
“Mr Speaker, Sir, I wish to thank the Members for Telok Blangah, Clementi and Punggol for their interest in the MRT. The House is aware that the Provisional MRT Authority was set up in July 1980 for the purpose of undertaking all preliminary works related to the MRT. I wish to stress that, not for the first time, these works, which include traffic studies, land surveys, soil studies and other engineering investigations, are absolutely necessary before the MRT construction can take place. They are not merely feasibility studies and cannot be considered as unnecessary expense. That is to say, even if we make a decision today to proceed with the MRT, these works will have to be carried out before groundbreaking can begin. Far from delaying the project, we are, therefore, preparing ourselves to proceed with the building of the MRT with minimum delay once a firm decision has been taken. It is not true that $21 million of public funds has already been spent by the Provisional MRT Authority. This is the amount that was approved in 1980 to enable the Provisional MRT Authority to carry out the necessary preliminary work over the next two to three years. Of this $21 million, the Provisional MRT Authority has so far spent $4.3 million since its inception. Another $8 1/2 million has been provided for FY 82-83. This is all for the purpose of necessary preliminary work. Whilst on this point, I wish to dispel the wrong impression that we have spent a fortune on MRT. A total of $13 million has been spent since 1972 when we first started looking into the feasibility of MRT. This includes $4.3 million spent by the Provisional MRT Authority so far. Of the $13 million, the UNDP contributed $3 million. The Government's own expenditure on MRT studies so far is $10 million.”
“I would like to inform the Member for Boon Lay that the problems relating to the implementation of the second tier wage increase will be brought to the attention of the National Wages Council for its deliberation in its coming session. FURTHER EDUCATION FOR SAF OFFICERS AND NCOs 7. Mr S. Chandra Das asked the Minister of Defence what plans or programmes are available for promoting further education among officers and the rank and file, to ensure that there is continuing improvement in the quality of the Singapore Armed Forces.”
“Mr Speaker, Sir, annually officials from my Ministry meet employers, employers' organizations and trade unions to obtain feedback on the implementation of the NWC recommendations. My Ministry is therefore aware of the problems arising from the implementation of these recommendations. The NWC second tier award recommendation is now in its second year of implementation. During the first year, there were some teething implementation problems. This was partly because companies were not forewarned that the recommendation would contain a second tier payment to reward above average workers. They were caught unprepared and many did not have a proper performance appraisal system to assess the workers. Even where employers had appraisal systems, these had to be modified for the purpose of the second tier payment. As a result there were many complaints from workers and unions that workers were not assessed objectively and that supervisors were biased. To resolve this problem, the National Productivity Board conducted courses on performance appraisal to equip supervisors and middle management on the proper method of appraising their workers for award of the second tier. In the second year, less problems were encountered because the standard of performance appraisal has improved. Nevertheless from the feedback obtained, the second tier award appears to be more a demotivating than a motivating factor. Furthermore, employers and unions claimed that it worked against teamwork. The second tier wage increase, however, has some positive effects. For one thing it has succeeded in propagating the wide-spread use of proper performance appraisals to identify the meritorious workers within a company.”
“Although the premium collected appears large compared to the pay-outs so far, I wish to remind the Member for Buona Vista that the premium is a one-time payment by the CPF member, who is covered until the age of 55. For some of the younger members insured under the Scheme, the coverage could be as long as 20 years. The premium collected will be placed in the Home Protection Fund and will be invested to ensure that adequate returns are derived to meet future claims by those insured. NATIONAL WAGES COUNCIL (Second tier payment) 6. Mr Goh Chee Wee asked the Minister for Communications and Minister for Labour if he has assessed the impact of the introduction of the second tier award as recommended by the National Wages Council; is he aware that the implementation of the second tier award has created a great deal of dissatisfaction among the employees and has therefore become a demotivating and demoralizing factor; and what measures he would recommend to improve upon the scheme to ensure that the original objective of motivating the workers to excel through a proper performance appraisal and reward system could be achieved.”
“Sir, Tampines New Town is still in its early stages of development. So far, only a few hundred units of flats along Avenue 2 have been ballotted. To serve these residents, plans are being finalized to introduce a service from this neighbourhood direct to Bedok Interchange where connections can be made to most parts of Singapore. More services will be introduced as Tampines New Town develops. A total of eight feeder services have been planned. Trunk services will be provided to various parts of the CBD, Changi Airport, New Towns as well as major nearby industrial estates and the main traffic corridors nearby. HOME PROTECTION INSURANCE SCHEME (Particulars) 5. Dr Ang Kok Peng asked the Minister for Communications and Minister for Labour (a) how much money has been collected under the Home Protection Insurance Scheme from the date of operation of the Scheme to the end of February 1982; (b) how much money has been paid out under the Scheme and to how many persons; and (c) how he proposes to use the surplus, if any, for the benefit of the members of the Scheme. Mr Ong Teng Cheong: Sir, as at the end of February, 1982, the CPF Board has collected a sum of $23 million from CPF members who are insured under the Scheme. So far, the Board has paid out a total of $33,705 in respect of four claims. In the first claim involving a permanent disablement case, the CPF Board paid out a sum of $5,195 for which the member paid a premium of $240 only. In the second case, a sum of $8,951 was paid out on a premium of $415. In the third case, a sum of $13,654 was paid out for which the premium was $637. The fourth claim involved a payment of $5,905 and a premium of $268. Seventeen other claims are still being processed by the CPF Board.”
“Sir, it costs the CPF Board a certain amount of expenditure to take an employer to court. Who covers this cost? I wonder whether the Member for Anson could enlighten this House on how to work out the sum. In cases where the employer paid his CPF contributions late, no doubt the employees will suffer a certain loss in terms of interest. But as I mentioned earlier, this penalty interest should be regarded as a penalty on the employer. It is a penalty fine. It is not an interest which the employee is entitled to. BUS SERVICES FOR BEDOK/TAMPINES NEW TOWN 4. Encik Saidi Haji Shariff asked the Minister for Communications and Minister for Labour, in view of the urgent requests from the residents, whether he will indicate what bus services have been planned for Bedok/Tampines New Town.”
“Sir, the penalty interest for late payment of contributions is similar in nature to the 'fine' imposed by the court of law for other offences under the Central Provident Fund Act. Both the penalty interest and the fine are pecuniary punishments to deter employers from committing offences under the Act. As in the case of the fine, the penalty interest is not credited into the member's account. Interest is only payable in respect of contributions paid. A member whose contribution is paid late by his employer cannot therefore be compensated for the interest lost as a result of the late payment. However, the Member may wish to know that the CPF Board is regularly taking enforcement action to ensure that employers pay the CPF contributions in time.”
“Sir, I beg to report that the Committee of Supply has made further progress on the Main and Development Estimates for the financial year 1st April, 1982 to 31st March, 1983, and ask leave to sit again on Monday, 22nd March, 1982.”
“At the same time. it will examine whether it will be practical to make a computer listing of all STD calls made in the same manner as for International Direct Dialling (IDD) calls. In the case of IDD calls, details of date, duration and location of the called party are recorded. We must remember that we now have 550,000 or so direct telephone lines in the network and the number is increasing rapidly. The Member for Alexandra will be interested to know that of the estimated one million STD calls made each month Telecoms received about 240 queries. This works out to only 0.024% of total calls. When Telecoms completes the study in the next 12 to 14 months, it hopes to reduce further the already small number of telephone subscribers who claim that they are receiving bills for STD and other calls which they did not make.”
“Sir, the Member for Chong Boon asked about whether Telecoms is able to reduce the domestic telephone rentals, in view of the fact that Telecoms has in recent years been gradually reducing the rates on international telephone and telex charges. The main reasons for Telecoms being able to reduce international telephone and telex charges in recent years are the decreasing cost of using international satellite circuits and the drop in prices of electronic and computer equipment. The 42% and 33% increases in the volume of international telephone and telex traffic, respectively, in 1981 over that for 1980 have also enabled economies of scale to be realized, thereby lowering the unit cost. The existing rental for domestic telephones is only $200 per year. This rate is among the lowest in the world and it has not been increased for over 10 years, since 1971. Telecoms has been able to maintain the existing rate through its ability to purchase equipment at competitive prices as well as gains in productivity through adoption of the latest technological innovation, such as push-button telephones, stored programme control exchanges, computerized fault control centre and plug-and-socket installations, all of which have helped to reduce maintenance costs. By getting domestic telephone charges unchanged throughout the inflationary 1970s, there is, in real terms, already a reduction in domestic rentals. 6.45 p.m. The Member for Alexandra raised a point on the problems caused by the Subscriber Trunk Dialling. Telecoms is making a serious study of the problems caused by STD and other calls being made on subscribers' telephones without their knowledge. In this study, Telecoms will consider the possibility of using electronic means of preventing STD calls from individual subscribers.”
“I only wish to say to the Members for Khe Bong and Anson that I am not able to tell them at this stage how HDB is in a position to help them, and I would advise all the tenants, whether they are PSA employees or non-PSA employees, to find their own flat as soon as possible and move out before trouble befalls on them.”
“Sir, the telemetering project, when implemented, is expected to reduce the number of complaints over the accuracy of PUB charges. It is not possible to eliminate the complaints altogether. As I mentioned earlier, since PUB meters through the telemetering will be read more frequently, excess consumption can be detected quickly and faulty meters and leaks in the water, gas and electricity supplies can thereby be quickly rectified. The accuracy of the reading would depend on the meter and not on telemetering. Sir, coming back to Blair Plain again, I would only want to take this opportunity to explain that the flats in which the Blair Plain residents are occupying are not service quarters of PSA. They are flats on monthly tenancies. They are different from service quarters, such as nurses' quarters or quarters belonging to factories provided for the workers within the premises of the company. Even if they are service quarters, there is no company in the world that provides life-long housing or accommodation for their employees. I do not think anyone here in Singapore, including the Member for Anson, provide quarters for their staff. Even in Japan where they practise life-long employment, no life-long housing is provided. If Members have watched the television programme three days ago on the 17th March, on Japanese company welfarism of the Nissan Com- pany, the car manufacturers, they will notice that housing is provided for the employees up to a maximum period of seven years, and then they must move out. If they have difficulties, the company will help them financially with low interest loans.”
“Sir, I now turn to the points raised by the Member for Khe Bong and Member for Anson regarding the resettlement problems of Blair Plain residents. I am as concerned as they are regarding the interest of the residents of Blair Plain. The Blair Plain residents are on monthly tenancies. They accepted the temporary nature of their accommodation when they signed the tenancy agreement. They are fully aware that they may have to move out of their flats on one calendar month's notice. Such temporary arrangement cannot be regarded as permanent for these tenants. Since 1970, the Singapore Port Workers' Union and the PSA had advised the residents of Blair Plain to register for purchase of their own HDB flats. Those who had heeded the advice would have obtained homes of their own by now. When the PSA decided that Blair Plain flats had to be demolished by 1983 to make way for port development, all affected PSA employees were given two years' advance notice in June 1981 to find their own alternative accommodation. The non-PSA employees were given one year's advance notice. I am sorry that, much as we would like, the PSA cannot provide alternative accommodation for these tenants after 1983. Neither can the PSA expect the HDB to accord resettlement priorities to all its Blair Plain tenants. The HDB has its own guidelines on allocating flats to ensure fairness to all its flat applicants. I am only able to say at this stage, Sir, that the PSA is in the midst of negotiating with the HDB to see to what extent the HDB is in a position or is able to help residents of Blair Plain. I am not able to tell any more at this stage. He will have to wait until the outcome of the presentations made, both by the Singapore Port Workers' Union and the PSA. 6.30 p.m.”
“We will have to wait until the study is completed in two years' time. The Member for Punggol also raised a query on Object Group 3310 of the Main Estimates regarding the staff recreation and welfare expenses. I presume the hon. Member for Punggol wants to know why funds are provided for dental subsidy and staff recreation and welfare expenses this year, when none was provided last year. He is very sharp. The dental subsidy is meant to subsidize dental costs of civil servants going to Government dental clinics. Previously, this was reflected in the estimates for the Finance Ministry which has now decided to decentralize such expenses to individual Ministries and departments. A sum of $39,100 has been provided for staff recreation and welfare expenses this year. This is based on $1 per month for each employee in the Ministry of Communications. Staff welfare committees comprising both senior and junior officers have been set up in each of the departments to make use of this fund to organize group activities that would promote team spirit and boost morale of staff members. The fund will also be used to improve facilities and brighten up the working environment. While I agree that stringent control must be exercised over recurrent expenditure, this should not be done at the expense of the morale of the civil servants. After all, it is the civil servant who ensures that development and other projects are implemented successfully. To do so, he must be adequately motivated and money spent for this purpose is money well-spent. We will continue to exercise stringent control over recurrent expenditure by saving manpower, by simplifying work procedures, by looking into computerization and mechanization and by productivity improvements.”
“It is the intention of Telecoms to produce this black box as cheaply as possible, hopefully around $30 to $70 per unit. But it has not yet been decided whether Telecoms, the PUB or the consumer would bear part or all the cost of the black box, the modification cost of existing PUB meters and associated labour and material cost. The Member also asked about the teleview system which he has read in the newspapers. It is basically intended to enable members of the public to gain access to information stored in the central computer. The information could include stock and share prices, entertainment and travel schedules, educational information, news and weather reports and shopping guides, etc. The system also consists of a black box with a key tag, like the one we see on a home computer. One end of the black box is connected to the input terminal of the television set, while the second or the other end is connected to the telephone network via the telephone line. The subscriber thereby gains access to computer through the telephone line. The computer then sends information through the air by broadcasting techniques and the required information is then displayed over the television screen. Telecoms is finalizing plans to jointly develop the teleview system with an overseas partner. The development is expected to take about one and a half to two years to complete. A trial service is scheduled for 1984. Depending on the results of the trial service, Telecoms hopes to begin implementation of the teleview system on an island-wide basis in 1986 or 1987. Telecoms plans to produce the black box for about $50 per unit, hopefully, It has not yet decided whether to make the customer pay for this or whether to make it available to the public free of charge.”
“Mr Speaker, Sir, may I deal with the questions raised by the Member for Punggol first? The Member for Punggol asked about telemetering and teleview. The Telecoms telemetering project involves a centralized computer utilizing the telephone network to measure and record PUB consumption levels of gas, electricity and water automatically. The concept is this. A black box will be installed in the home. One end of the black box will be connected to the telephone network while the other end will be connected to modified PUB meters for water, electricity and gas. The consumption levels of gas, electricity and water in a home will be read and stored in the black box. The centralized computer will then be able to read the PUB meters as and when required without having to send meter readers to the home. The telephone network is normally under-utilized at certain times of the day, for example, between midnight and 5 a.m. in the morning. The computer will be programmed to read the PUB meters of homes at these hours to minimize the inconvenience to telephone users. The PUB meters can be read as often as required instead of the present two-month interval. The meters are read automatically. So no more problems with meter readers. Complaints of excessive charges can also be more speedily handled and mistakes, if any, quickly rectified. Telecoms has almost completed the development of the telemetering project and there are plans to implement a field trial involving about 100 households sometime in the middle of this year. The field trial is expected to last about a year and, on its completion, a study will then be made to look into the feasibility of introducing the service on an island-wide basis.”